Ch. 2 (Ad's Role in Marketing)

7/31/2019 Ch. 2 (Ad's Role in Marketing)

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Advertisings Role inMarketing

Chapter 2


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What is Marketing?

The way a product is designed,tested, produced, branded,packaged, priced, distributed, andpromoted


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Key Concepts in Marketing

The marketingconcept

Exchange Branding Added value

The act of trading adesired product orservice to receivesomething of value inreturn

Money is exchanged for

goods


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The process of creatinga distinctive and specialmeaning for a product

Brand equity isreputation, meaning,and value that the brandname or symbol hasacquired over time


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A marketing oradvertising activitymakes a product more

valuable, useful, orappealing


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The Key Players and Markets

The marketer Suppliers and

vendors Distributors

and retailers

Other companies thatmanufacture thematerials and

ingredients used inproducing the product


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The Key Players and Markets

The marketer Suppliers and

vendors Distributors

and retailers

Various companies thatare involved in movinga product from its

manufacturer to thebuyer


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Types of Markets

Consumer Business-to-business (Industrial)

Institutional Channel


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The Marketing Process

1. Conduct research and develop a situationanalysis

2. Set objectives for the marketing effort3. Assess consumer needs and wants4. Differentiate and position the product

5. Develop the marketing mix strategy6. Evaluate the effectiveness of the strategy


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Marketing Mix Strategies

Product Place Price Promotion

The product is both theobject of the advertisingand the reason for

marketing Product category

A class of similarproducts


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The channels used inmoving the productfrom manufacturer to

buyer


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Based on the cost of making and marketingthe product and on

expected profit Customary Psychological


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Use face-to-face contactbetween marketer andprospective customer

Used to createimmediate sales


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How Agencies WorkFull-Service Agencies

Include the four majorstaff functions

Account management Creative services Media planning and

buying Account planning

Also have accounting,traffic, production, andHR departments

Specialized Agencies Specialize in certain

functions, audiences,

industries or markets Creative boutique Media-buying services


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How Agencies Work

Account Management

Acts as a liaisonbetween the client and

the agency Responsible for

interpreting the clientsmarketing strategy

Creative Development

People who write People who design ideas

for ads and commercials People who convert

these ideas into

commercials


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How Agencies Work

Media Planning/Buying

Recommends to theclient the most efficient

means of delivering themessage

Responsible for buying,planning, and research

Account Planning

Gathers all informationon the market and

consumers and acts asthe voice of theconsumer

Prepares comprehensiverecommendations


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How Agencies Work

Internal Agency Services

Traffic department Print production

department

Revenues and Profits

Commission Fee Retainer


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International Marketing

An international brand is available virtuallyanywhere in the world

The shift requires new tools for advertisers,including one language, one controlmechanism, and one strategic plan

The choice of an agency depends on thedecision to standardize messages or localizethem to accommodate local cultures


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The Dynamics of Modern Marketing

Integrated marketing All areas of the marketing mix work closely together to

present the brand in a coherent and consistent way

Relationship marketing Marketing that considers all the firms stakeholders

Permission marketing Inviting prospective customers to self- select into a brands

target market in order to receive marketing communication

Documents

Ch. 2 (Ad's Role in Marketing)